Mortgage servicing entities need to constantly refresh their servicing portfolio to stay in business. Service Corporations, Mortgage Bankers and Supervised Lenders (Banks, etc.) provide the funds necessary to maintain a vibrant real estate industry.

One of the major methods of fund conveyance to the real estate market is through a "Third Party Originator" (TPO). The most predominant TPO is the Mortgage Broker (MB).

All Supervised Lenders would prefer the MB to disappear from the competitive real estate market. To much money in the home loan and sharing the profits with the MB industry has diminished the importance of the Supervised Lender.

In 1974, congress passed the "Real Estate Settlement Procedures Act" (RESPA) that forced lender to disclose all cost related to the loan: The "Good Faith Estimate" (GFE).

The Supervised lending industry lobby was successful in separating the funding lender's required RESPA disclosures from the TPO's disclosure requirements; disclosure of profits.

The MB is required to disclose all lender payments prior to the close of the loan transaction; "Rebates". The funding lender need not disclose any profit expectations.

                    Rebate Topics - The consumer's edge.

Misrepresentation Example - 30 days pass.